HUD Publishes FY22 Fair Market Rents
Regulation | August 06, 2021 | by Juliana Bilowich
HUD has published its FY22 Fair Market Rents, effective October 1, which impacts rents in various HUD and Low-Income Housing Tax Credit communities, and can also impact assistance received through the Emergency Rental Assistance program. The FMR notice provides a description of methodology and including information on area definition changes and FMR re-evaluations. HUD is accepting comments on the FMR calculations until September 30.
In the August 6 Federal Register, HUD published the FY22 Fair Market Rents (FMRs), effective October 1, and subject to public comment until September 30.
In general, the Fair Market Rent for an area is the amount that a tenant would need to pay the gross rent (shelter rent plus utilities) of privately owned, decent, and safe rental housing of a modest nature; HUD’s housing assistance payments for residents are limited by FMRs for different geographic areas, including Small Area Fair Market Rents (SAFMRs).
In the Housing Choice Voucher (HCV) program, the FMR is the basis for determining the “payment standard amount” used to calculate the maximum monthly subsidy for an assisted family. HUD also uses the FMRs to determine initial renewal rents for some expiring project-based Section 8 contracts, initial rents for housing assistance payment contracts in the Moderate Rehabilitation Single Room Occupancy program, rent ceilings for rental units in both the HOME Investment Partnerships program and the Emergency Solution Grants program, calculation of maximum award amounts for Continuum of Care recipients, and calculation of flat rents in Public Housing units.
The Department of the Treasury's Emergency Rental Assistance Program allows grantees to make payments to households up to the maximum of the applicable Fair Market Rent or Small Area Fair Market Rent in cases where the household does not have documentation of actual rent paid.
The August 6 FMR notice provides a description of methodology and includes information on area definition changes and FMR re-evaluations. HUD is accepting requests for FMR reevaluation until September 30.